The management of the economic crisis has had devastating consequences for our country, as well as for the eurozone as a whole. The fiscal austerity and wage reduction policies imposed over the last few years have unnecessarily prolonged the recession across the continent and generated deep social fractures by increasing economic and social inequalities.
Fiscal austerity and wage reduction policies have led us to a lost decade. Across the Eurozone, we haven’t yet regained pre-crisis level of per capita income, and in Spain this indicator is still 5% below its 2007 level. In our country, only one in three jobs lost during the crisis has been recovered, job precariousness has aggravated, and 29% of the population lives at risk of poverty or social exclusion.
New cuts in social spending and public investment such as those promised by the Partido Popular Government to Brussels, would have an extremely high economic and social cost. Growth would slow down, which in turn would heavily impact job creation and aggravate the situation of those most affected by the crisis. We need a turn in economic policies: we must end fiscal austerity and wage reduction policies to encourage a way out of the crisis that doesn’t leave anybody behind. This is crucial for Spain, as well as an opportunity to open up a new time in Europe.
Many voices at the international level are asking for a change in the Eurozone’s fiscal policy. The governor of the ECB has insistently called for an expansive fiscal policy for Eurozone countries, along with a monetary policy that avoids the risk of deflation. The OECD has also recently called for a relaxation in the Eurozone’s public deficit reduction goals in order to develop public investment plans that promote job creation and focus on productive priorities.
Genuinely boosting job creation, investing to modernise the productive fabric of our country, and tacking social fractures will require renegotiating with Brussels our country’s public deficit reduction rates. Making these objectives sustainable over time will also require a commitment from the next Spanish government to undertake a deep reform of the Pact for Stability and Growth that guarantees its flexibility to adapt to the economic cycle.
It is possible and necessary to reverse the cuts imposed over the last few years in healthcare, education, disability, and research; in order to bring Spain closer to European levels. Only by doing so, the benefits of economic growth will reach society as a whole and inequality will be reduced.
Additionally, it’s not enough to create new jobs, they must be quality and stable ones. This means repealing the last two labour reforms, not to go back to the previous situation, but to create a new, more democratic, and balanced framework of labour relations that guarantees living wages and discourages the fraudulent use of temporary contracts. Equality between men and women, especially in the job market, is also an essential condition to reinforce our democracy and wellbeing.
Furthermore, a new economic agenda for our country and the Eurozone cannot ignore the enormous environmental challenges ahead. Reconciling growth, job creation, and sustainability will require putting public investment programs at the service of the necessary process of decarbonisation of our industrial infrastructure and of an energetic transition based on efficiency and the use of renewable energies, thus guaranteeing an occupational alternative for those currently working in the affected sectors.
We also denounce the so-called free trade and investment treaties, such as TTIP, CETA, and TISA, negotiated in secrecy, which represent a serious threat to sovereignty and the environment, as they put the needs of transnational corporations before workers rights, health and environmental controls, and the democratic laws of countries.
Europe changes when its societies and governments change. For that reason, we think a change in the government of Spain is a first and fundamental step to initiate a wider change in the Eurozone. The change in economic policies that Spain needs is the same required by Europe, and vice-versa.
For all these reasons, we publicly back Unidos Podemos’ candidacy for the next general elections that will take place in Spain on June 26th. We believe their economic program is capable of tackling with credibility and rigour the challenges of the present and the future. We believe their program will serve to put an end to austerity policies in Spain, thereby also opening a new time in Europe.
List of signatures:
Vicenç Navarro, Catedrático de Políticas Públicas, Universitat Pompeu Fabra.
Thomas Piketty. EHESS & Ecole d’Economie de Paris/Paris School of Economics.
Ann Pettifor, Director of Policy Research in Macroeconomics and a member of Jeremy Corbyn’s Labour Party economic advisory panel.
James Galbraith. The University of Texas at Austin.
Victoria Chick. Emeritus Professor of Economics. University College London.
Rafael Muñoz de Bustillo Llorente. Catedrático de Economía Aplicada. Universidad de Salamanca.
Marina Subirats. Catedrática emérita, Universidad Autónoma de Barcelona.
Ozlem Onaran, Professor of Economics, Director of Greenwich Political Economy Research Centre, University of Greenwich.
Bruno Estrada. Economista. CCOO y Junta Directiva de Economistas Frente a la Crisis.
Bibiana Medialdea, Profesora de Economía, Universidad Complutense de Madrid.
Robert Pollin, Distinguished Professor of Economics and Co-Director, Political Economy Research Institute (PERI), University of Massachusetts-Amherst. (EEUU)
Republica (2016)Casi 180 economistas avalan el programa de Unidos Podemos en un manifiesto. http://www.republica.com/2016/06/20/unidos-podemos-contrarresta-las-criticas-a-sus-politicas-con-un-manifiesto-de-180-economistas/
170 Economists, Financial Experts, and Academics Back Bernie Sanders’ Wall Street Reform Plan
In the letter supporting Bernie Sander’s Financial Reform Plan
In our view, Sen. Bernie Sanders’ plan for comprehensive financial reform is critical for avoiding another “too-big-to-fail” financial crisis. The Senator is correct that the biggest banks must be broken up and that a new 21st Century Glass-Steagall Act, separating investment from commercial banking, must be enacted.
Wall Street’s largest banks are now far bigger than they were before the crisis, and they still have every incentive to take excessive risks. No major Wall Street executive has been indicted for the fraudulent behavior that led up to the 2008 crash, and fines imposed on the banks have been only a fraction of the banks’ potential gains. In addition, the banks and their lobbyists have succeeded in watering down the Dodd-Frank reform legislation, and the financial institutions that pose the greatest risk to our economy have still not devised sufficient “living wills” for winding down their operations in the event of another crisis.
Secretary Hillary Clinton’s more modest proposals do not go far enough. They call for a bit more oversight and a few new charges on shadow banking activity, but they leave intact the titanic financial conglomerates that practice most shadow banking. As a result, her plan does not adequately reduce the serious risks our financial system poses to the American economy and to individual Americans. Given the size and political power of Wall Street, her proposals would only invite more dilution and finagle.
The only way to contain Wall Street’s excesses is with reforms sufficiently bold and public they can’t be watered down. That’s why we support Senator Sanders’ plans for busting up the biggest banks and resurrecting a modernized version of Glass Steagall.”
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Below are the economists, financial experts, and academics who signed the letter.
Signers (Institutional listing for identification purposes only)
1. Robert Reich, University of California Berkeley 2. Robert Hockett, Cornell University 3. James K. Galbraith, University of Texas 4. Dean Baker, Center for Economic and Policy Research 5. Christine Desan, Harvard Law School 6. Jeff Connaughton, Former Chief of Staff, Senator Ted Kaufman 7. William Darity Jr., Duke University 8. Eileen Appelbaum, Center for Economic and Policy Research 9. Brad Miller, Former U.S. Congressman and Senior Fellow, Roosevelt Institute 10. William K. Black, University of Missouri-Kansas City 11. Lawrence Rufrano, Research, Federal Reserve Board, 2005-2015 12. Darrick Hamilton, New School for Social Research 13. Peter Eaton, University of Missouri-Kansas City 14. Eric Hake, Catawba College 15. Geoff Schneider, Bucknell University 16. Dell Champlin, Oregon State University 17. Antoine Godin, Kingston University, London, UK 18. John P. Watkins, Westminster College 19. Mayo C. Toruño, California State University, San Bernardino 20. Charles K. Wilber, Fellow, Joan B. Kroc Institute for International Peace Studies, University of Notre Dame 21. Fadhel Kaboub, Denison University 22. Flavia Dantas, Cortland State University 23. Mitchell Green, Binzgar Institute 24. Bruce Collier, Education Management Information Systems 25. Winston H. Griffith, Bucknell University 26. Zdravka Todorova, Wright State University 27. David Barkin, Universidad Autonoma Metropolitana-Xochimilco 28. Rick Wicks, Göteborg, Sverige (Sweden) & Anchorage, Alaska 29. Philip Arestis, University of Cambridge 30. Amitava Krishna Dutt, University of Notre Dame 31. John F. Henry, Levy Economics Institute 32. James G. Devine, Loyola Marymount University 33. John Davis, Marquette University 34. Gary Mongiovi, St. John’s University 35. Eric Tymoigne, Lewis & Clark College 36. Trevor Roycroft, Ohio University 37. James Sturgeon, University of Missouri-Kansas City 38. Spencer J. Pack, Connecticut College 39. Thomas Kemp, University of Wisconsin – Eau Claire 40. Ronnie Phillips, Colorado State University 41. John Dennis Chasse, SUNY at Brockport 42. Pavlina R. Tcherneva, Bard College 43. Silvio Guaita, Institution, Federal University of Rio de Janeiro (UFRJ) 44. Glen Atkinson, University of Nevada, Reno 45. William Van Lear, Belmont Abbey College 46. James M. Cypher, Universidad Autónoma de Zacatecas 47. Philip Pilkington, Political Economy Research Group, Kingston University 48. Eric Hoyt, UMass-Amherst 49. Jon D. Wisman, American University 50. James K. Boyce, University of Massachusetts Amherst 51. Hendrik Van den Berg, Professor Emeritus, Universities of Nebraska 52. Thomas E. Lambert, Northern Kentucky University 53. Michael Nuwer, SUNY Potsdam 54. Nikka Lemons, The University of Texas-Arlington 55. Scott T. Fullwiler, Wartburg College 56. Charles M A. Clark, St. John’s University 57. John T. Harvey, Texas Christian University 58. Daphne Greenwood, University of Colorado-Colorado Springs 59. Gerald Epstein, University of Massachusetts Amherst 60. Mohammad Moeini-Feizabadi, University of Massachusetts 61. Rebecca Todd Peters, Elon University 62. Andres F. Cantillo, University of Missouri-Kansas City 63. Michael Meeropol, Professor Emeritus of Economics, Western New England University 64. Robert H. Scott III, Monmouth University 65. Timothy A Wunder, Department of Economics University of Texas- Arlington 66. Mariano Torras, Adelphi University 67. Gennaro Zezza, Levy Economics Institute 68. Wolfram Elsner, University of Bremen 69. Larry Allen, Lamar University 70. John Miller, Wheaton College 71. Chris Tilly, UCLA 72. Sean Flaherty, Franklin and Marshall College 73. Clifford Poirot, Shawnee State University 74. Anita Dancs, Western New England University 75. Calvin Mudzingiri, University of the Free State 76. Roger Even Bove, West Chester University 77. Andrea Armeni, Transform Finance 78. Anwar Shaikh, New School for Social Research 79. Steven Pressman, Colorado State University 80. Frank Pasquale, University of Maryland, Carey School of Law 81. John Weeks, SOAS, University of London 82. Matías Vernengo, Bucknell University 83. Thomas Masterson, Levy Economics Institute 84. Antonio Callari, Franklin and Marshall College 85. Avraham Baranes, Rollins College 86. Janet Spitz, the College of Saint Rose 87. Nancy Folbre, University of Massachusetts Amherst 88. Jennifer Taub, Vermont Law School 89. Irene van Staveren, Erasmus University 90. Yavuz Yaşar, University of Denver 91. Scott McConnell, Eastern Oregon University 92. Don Goldstein, Allegheny College 93. J. Pérez Oya, Retired UN secretariat (Spain) 94. Elaine McCrate, University of Vermont 95. Thomas E. Weisskopf, University of Michigan 96. Jeffrey Zink, Morningside College 97. Scott Jeffrey, Monmouth University 98. Lourdes Benería, Cornell University 99. Frank Thompson, University of Michigan100. Baban Hasnat, The College at Brockport, State University of New York
100. Baban Hasnat, The College at Brockport, State University of New York 101. Ilene Grabel, University of Denver 102. Tara Natarajan, Saint Michael’s College 103. Leanne Ussher, Queens College, City University of New York 104. Kathleen McAfee, San Francisco State University 105. Victoria Chick, University College London 106. Steve Keen, Kingston University 107. Heidi Mandanis Schooner, The Catholic University of America 108. Louis-Philippe Rochon, Laurentian University 109. Jamee K. Moudud, Professor of Economics, Sarah Lawrence College 110. Timothy A. Canova, Shepard Broad College of Law, Nova Southeastern University 111. Karol Gil Vasquez, Nichols College 112. Mark Haggerty, University of Maine 113. Luis Brunstein University of California, Riverside 114. Cathleen Whiting, Willamette University 115. William Waller, Hobart and William Smith Colleges 116. Kade Finnoff, University of Massachuettes-Boston 117. Maarten de Kadt, Independent Economist 118. Timothy Koechlin, Vassar College 119. Ceren Soylu, University of Massachusetts-Amherst 120. Dorene Isenberg, University of Redlands 121. Barbara Hopkins, Wright State University 122. Matthew Rice, University of Missouri-Kansas City 123. David Gold, The New School for Social Research 124. Cyrus Bina, University of Minnesota 125. Mark Paul, University of Massachusetts-Amherst 126. Xuan Pham, Rockhurst University 127. Erik Dean, Portland Community College 128. Arthur E. Wilmarth, Jr., George Washington University Law School 129. Rohan Grey, President, Modern Money Network 130. Tamar Diana Wilson, University of Missouri—St. Louis 131. Radhika Balakrishanan, Rutgers University 132. Alla Semenova, SUNY Potsdam 133. Yeva Nersisyan, Franklin and Marshall College 134. Linwood Tauheed, University of Missouri-Kansas City 135. Michael Perelman, California State University, Chico 136. Janet T. Knoedler, Bucknell University 137. David Laibman, Brooklyn College and Graduate School, City University of New York 138. Ann Pettifor, Director, Policy Research in Macroeconomics, London 139. Steve Schifferes, City University London 140. Al Campbell, University of Utah 141. Faith Stevelman, New York Law School 142. Kathleen C. Engel, Suffolk University Law School 143. Jack Wendland, University of Missouri-Kansas City 144. Ruxandra Pavelchievici, University of Nice Sophia Antipolis 145. Zoe Sherman, Merrimack College 146. Donald St. Clair, CFP, Financial Planning Assoc. of Northern California 147. Carolyn McClanahan, CFP, Life Planning Partners, Inc. 148. Thomas Ferguson, Senior Fellow, Roosevelt Institute 149. Saule T. Omarova, Cornell University 150. Josh Ryan-Collins, City University, London 151. June Zaccone, Hofstra University 152. Alex Binder, Franklin & Marshall College 153. Albena Azmanova, University of Kent, Brussels School of International Studies 154. Hans G. Ehrbar, University of Utah 155. Devin T. Rafferty, St. Peter’s University 156. Reynold F. Nesiba, Augustana University 157. David Zalewski, Providence College 158. Claudia Chaufan, University of California-San Francisco 159. L. Randall Wray, Levy Economics Institute and Bard College 160. Richard B. Wagner, JD, CFP, WorthLiving LLC 161. Joseph Persky, University of Illinois-Chicago 162. Julie Matthaei, Wellesley College 163. Peter Spiegler, University of Massachuetts-Amherst 164. James Ronald Stanfield, Colorado State University 165. William D. Pitney, CFP, Director of Advocacy, FPA of Silicon Valley 166. Ora R. Citron, CFP, Oak Tree Wealth Management 167. Susan Webber, Former Associate at Goldman, Sachs & Co. 168. Richard D. Wolff, Democracy at Work and New School for Social Research 169. Mu-Jeong Kho, University College London 170. Kevin Furey, Chemeketa Community College